Domestic demand may save Taiwan solar cell makers, says…

The Taiwan government has decided to strengthen development of renewable energy, mostly PV and wind power, as it seeks to phase out nuclear power, and this has afforded opportunities for local solar cell makers to survive, according to Ellick Liao, chairman of solar cell maker TSEC.

If the government had not pledged support for PV power, many of the local solar cell makers would have begun to end operations, Liao noted.

Taiwan’s PV supply chain focuses on solar cell production and are weak in upstream segments (polysilicon and solar wafer productions), and downstream ones (PV modules, power stations and rooftop systems), Liao indicated.

With an incomplete supply chain, Taiwan solar cell makers have been facing fluctuations in overseas markets arising from government policy changes and impacts of US and EU antitrust tariffs, Liao said.

Taiwan’s solar cell makers heavily relies on outsourcing orders from China-based PV module makers, who have increased in-house production and reduced outsourcing orders and prices accompanying them, Liao noted.

Thanks to the Taiwan government’s boosting domestic demand for PV installation, Taiwan-based solar cell makers now have opportunities of extending production to PV modules, Liao indicated.

However, PV module production faces price competition from China-based and international vendors and therefore production cost is key to competitiveness, Liao said, adding Taiwan’s cell makers must adopt fully- or highly-automated production lines for PV modules.

TSEC is constructing a fully-automated PV module factory with initial annual production capacity of 500MWp in southern Taiwan, Liao said. The factory will focus on high-efficiency PV modules by using TSEC-produced PERCs (passivated emitter and rear cells) to differentiate from imported ones, Liao indicated.

With PERC accounting for 80% of total solar cell production capacity, TSEC is the second largest among Taiwan-based PERC makers, Liao noted.

Since Taiwan-based PV module makers are unable to compete with China-based ones in overall production cost, overseas marketing channels and government support, the factory will focus on the domestic market initially and is likely to tap overseas markets if its development goes well and market conditions are favorable, Liao indicated.

TSEC has also formed a subsidiary for investing in and undertaking EPC (engineering, procurement, construction) and operation of PV power stations and rooftop systems in Taiwan, Liao said.

TSEC chairman Ellick Liao
Photo: Digitimes file photo

Categories: Green energy Solar

Tags: chairman demand solar cell Taiwan

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